BiH government rejects proposed 31.3% hike in wholesale gas prices

The FBiH government on Wednesday did not approve a request by BH Gas for a 31.3% increase in wholesale gas prices. The decision was expected since FBiH Energy Minister Nermin Dzindic has already ruled out such a hike saying that the increase that could be considered is of about 3-5%. The government pointed out to the negative socio-economic aspects of such an increase and said that it would result in decrease in natural gas consumption in the Federation and ultimately would lead to further increase of prices. Therefore the government advised the company to consider the possibility for a gradual increase of prices. Recall that the gas supplier has demanded prices to go up to KM650 from KM495 per 1,000 cubic meters of gas as of Jan 1. The company has argued that the increase was needed because of the rise of oil and oil products prices in 2018, which led to higher Russian gas supply prices.

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